risk: What Is An Underwriting Guideline Overlay?
- 01/01/11 05:23 AM
Why does it sometimes seem that underwriting guidelines vary from mortgage company to mortgage company? Well, it is because, sometimes they do. Each agency (Fannie Mae, Freddie Mac, FHA, VA, USDA) sets the minimum guidelines for the approval of a mortgage that they will back if it defaults. An overlay is when a mortgage lender adds an additional restriction to their guidelines. One huge misconception is that There are many types of overlays. Some of the most common include:
When an Underwriter makes a condition that someone doesn't agree with, they are not just doing it because they want to. There is a valid reason behind it. … (2 comments)
Why does it sometimes seem that underwriting guidelines vary from mortgage company to mortgage company? Well, it is because, sometimes they do. Each agency (Fannie Mae, Freddie Mac, FHA, VA, USDA) sets the minimum guidelines for the approval of a mortgage that they will back if it defaults. An overlay is when a mortgage lender adds an additional restriction to their guidelines. One huge misconception is that
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